Head Mounted Display Market Growth Analysis | 2024-2030

Market Insights

“The head mounted display market was estimated at USD 3.3 billion in 2023 and is likely to grow at a CAGR of 39.2% during 2024-2030 to reach USD 26.0 billion in 2030.”

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Market Dynamics

The head mounted display (HMD) market is rapidly growing, driven by advancements in technologies like virtual reality (VR), augmented reality (AR), and mixed reality (MR). These wearable devices are designed to provide immersive visual experiences that are no longer limited to just gaming à they're marking applications in healthcare, education, and even military training. As more people seek interactive and engaging ways to learn, play, and work, HMDs are becoming increasingly popular. Based on the type of device, these HMDs are available in the market as discrete HMDs, integrated HMDs, and slide-on HMDs. With innovations like sharper displays, more comfortable designs, and seamless integration with our everyday gadgets, the market is on a steady rise, with the potential to transform both personal and professional spaces.

Market Drivers

The market is growing due to rising demand for immersive experiences in gaming, entertainment, and virtual reality. Technological advancements, including better display resolution, improved ergonomics, and seamless smartphone and computer integration are driving this growth. HMDs are also increasingly used in healthcare, education, and military training. As industries seek more interactive and engaging solutions, the demand for HMDs continues to expand.

Recent Market Partnerships, Agreements, JVs, and Acquisitions:

A huge number of strategic alliances including M&As, JVs, etc. have been performed over the past few years:

• In 2024, Sony and Siemens partnered to develop a state-of-the-art head-mounted display aimed at revolutionizing industrial training and remote assistance to enable immersive engineering with a new spatial content creation system designed with and for Siemens Xcelerator.
• In April 2023, Meta entered into a partnership with Lenovo, Asus, and Microsoft to bring new VR headsets powered by Meta's Quest operating system to the market and to expand the reach of Meta’s VR ecosystem by integrating Quest's software into hardware produced by other leading tech companies.
• In 2022, Meta and Logitech partnered for the CHORUS audio device specifically designed for the Meta Quest 2 to deliver immersive sound and enhanced audio quality to elevate the virtual reality experience for users engaged in gaming and collaborative environments.
• In August 2021, ByteDance acquired the world’s second-largest VR headset manufacturer Pico to enter the extended reality (XR) market and compete with companies like Meta.

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Key Players

The market is highly consolidated with the presence of less than 50 players across the globe. Most of the major players compete in some of the governing factors including price, product offerings, regional presence, etc. The following are the key players in the head mounted display market.

Here is the list of the Top Players (Based on Dominance)

• Meta (Oculus)
• Sony Group Corporation
• PICO Immersive Pte. Ltd. (ByteDance)
• NAUE GmbH & Co.
• DPVR
• XREAL, Inc.

Note: The above list does not necessarily include all the top players in the market.

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Segment Analysis

By Component Type

“Processors & memory is expected to remain dominant, whereas sensors to be the fastest-growing component type in the market during the forecast period.”

• The head-mounted display market is segmented into processors & memory, displays, lenses, sensors, controllers, cameras, cases & connectors, and others.
• Processors & memory components are expected to remain dominant due to their higher demand for realistic experiences with better refresh rates.
• Sensors, processors, & memory are poised to grow due to growing demand for better processors, storage, and more accurate and responsive sensors.
• The growing demand for better sensors including gyroscopes, accelerometers, and magnetometers offers lucrative opportunities as these sensors track head movements accurately and make real-time adjustments to the displayed content, creating a realistic and immersive experience for users.

By Type

“Discrete HMD is expected to remain dominant whereas integrated HMD is likely to be the fastest-growing segment during the forecast period.”

• The market is segmented into slide-on HMD, integrated HMD, and discrete HMD.
• Discrete HMDs are expected to remain the dominant type in the market. They offer superior visual quality, fewer connectivity issues, wired connection, comfort, and precise motion tracking to enhance the user experience.
• Discrete HMDs generally provide better performance, including higher resolution, better refresh rates, and more immersive experiences, compared to slide-on HMDs, which are limited by smartphone capabilities.
• Integrated HMDs are becoming popular in aerospace & defense, healthcare, and automotive industries, especially for training and simulation purposes.

By End-Use Type

“Consumer segment dominated the market while the commercial segment is likely to become the dominant end-use driven by its fastest growth in the market during the forecast period.”

• The market is segmented into consumer, commercial, engineering & design, healthcare, aerospace & defense, education, and others
• The gaming industry relies heavily on VR headsets for immersive experiences.
• The growing popularity of virtual and augmented reality in various industries is driving the demand for HMDs in both consumer and commercial markets.
• Commercial end-use is experiencing rapid growth in the head-mounted display (HMD) market due to the increasing adoption of augmented reality (AR) in retail, marketing, workplace training, remote collaboration, and maintenance.

Regional Insights

“Asia-Pacific is expected to remain the largest as well as the fastest-growing market for head-mounted display during the forecast period.”

• In China, Japan, and South Korea, video games and esports are extremely popular where China has the largest gaming market globally, Japan is known for its rich gaming history and iconic franchises, and South Korea has a particularly strong esports scene making the Asia-Pacific region a dominant force in the gaming industry overall.
• The region’s rapid urbanization, rising incomes, and technological advancements have increased consumer access to HMDs, leading to widespread adoption in both consumer and commercial segments.
• Asia-Pacific is a key hub for consumer electronics production and consumption due to increasing per capita income, strong economic growth, and access to low-cost labor.

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Research Methodology

This strategic assessment report, from Stratview Research, provides a comprehensive analysis that reflects today’s head mounted display market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.

The head mounted display market is segmented into the following categories:

By Component Type

• Processors and Memory
• Displays
• Lenses
• Sensors
• Controllers
• Cameras
• Cases and Connectors

By Type

• Slide-on HMD
• Integrated HMD
• Discrete HMD

By End-Use Type

• Consumer
• Commercial
• Engineering & Design
• Healthcare
• Aerospace & Defense
• Education
• Others

By Region

• North America (Country Analysis: The USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, The UK, Russia, and the Rest of Europe)
• Asia-Pacific (Country Analysis: China, India, Australia, South Korea, and the Rest of Asia-Pacific)
• Rest of the World (Country Analysis: Saudi Arabia, Brazil, and Others)

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Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Product portfolio, geographical reach, regional presence, and strategic alliances.

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com.